The table below shows Lanark's production possibilities. Wheat Cars A 0 105 B 100 100 C 175 90 D 225 70 E 250 40 F 260 0 a. If Lanark is producing 80 cars, it can produce approximately b. If Lanark is currently producing combination C. the cost of 50 more wheat is (Click to select) v c. If Lanark is currently producing combination the approximate per unit cost of an additional car is necessary, round your answers to 1 decimal place. Remember to round 0.05 up to 0.10. wheat. (Click to select) If

The table below shows Lanark's production possibilities. Wheat Cars A 0 105 B 100 100 C 175 90 D 225 70 E 250 40 F 260 0 a. If Lanark is producing 80 cars, it can produce approximately b. If Lanark is currently producing combination C. the cost of 50 more wheat is (Click to select) v c. If Lanark is currently producing combination the approximate per unit cost of an additional car is necessary, round your answers to 1 decimal place. Remember to round 0.05 up to 0.10. wheat. (Click to select) If

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 15P

See similar textbooks

Similar questions

A small company that shovels sidewalks and driveways has 100 homes signed up for its services this winter. It can use various combinations of capital and labor: intensive labor with hand shovels, less labor with snow blowers, and still less labor with a pickup truck that has a snowplow on front. To summarize, the method Choices are: Method 1: 50 units of labor, 10 units of capital Method 2: 20 units of labor, 40 units of capital Method 3: 10 units of labor, 70 units of capital If hiring labor for the winter costs $100/unit and a unit of capital costs 400, what is the best production method? What method should the company use if the cost of labor rises to $20/unit?
Small Mom and Pop firms, like inner city grocery stores, sometimes exist even though they do not earn economic profits. How can you explain this?
What is die difference between accounting and economic profit?
Based on your answers to the WipeOut Ski Company in Exercise 7.3, now imagine a situation where the firm produces a quantity of 5 units that it sells for a price of 25 each. What will be the companys profits or losses? How can you tell at a glance whether the company is making or losing money at this price by looking at average cost? At the given quantity and price, is the marginal unit produced adding to profits?
How does fixed cost affect marginal cost? Why is this relationship important?
Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
How would an improvement in technology, like the high-efficiency gas turbines or Pirelli tire plant, affect me lung-nm average cost curve of a firm? Can you draw the old curve and the new one on the same axes? How might such an improvement affect other firms in the industry?
Would you consider an interest payment on a loan to a film an explicit or implicit cost?